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Cryptocurrency is not without benefits as a decentralized form of currency, but those same aspects make it a great target for scammers. In fact, according to a new report from Chainalysis, crypto-related ransomware payments reached record-high figures in 2023. It’s a significant downturn, as 2022 actually saw crypto ransomware payments drop notably from the previous year. However, the broader five-year trend of ransomware payments is sharply increasing. Last year, the total cost of crypto ransomware payments exceeded $1 billion for the first time. Hackers and scammers often target places like hospitals or critical infrastructure, where the decision to pay or not pay a ransom is a life-or-death situation.
The initial estimate for crypto-related ransomware payments in 2023 is around $1.1 billion. However, the real total is probably higher than that. When Chainalysis initially reported its 2022 estimates, its figure was $457 million in ransomware payments. The final total for 2022 was revised to report $567 million in crypto ransomware payments. For reference, the revised total for 2022 was about 24% higher than the initial estimate. If that trend holds for the 2023 numbers, the real amount of crypto ransomware payments could be near $1.5 billion.
In 2019, people paid $220 million in crypto-related ransomware payments. That number spiked to $905 million in 2020 and held steady at $983 in 2021. In a shocking turn, the amount of crypto ransomware payments decreased by nearly half in 2022. The final $567 million total ransomware payments, though still significant, was a positive shift. In 2023, the upward trend continues, completely canceling out the positive signs we saw in 2022. The overall trends show that ransomware using cryptocurrency is spiking, and it reached its highest point yet last year.
Chainalysis says that 2022’s figures may have been an anomaly caused by global conflicts, such as the war in Russia and Ukraine. The report speculates that hackers may have shifted from ransomware attacks to more politically motivated attacks. In modern warfare, cyberattacks have proven to be a common and devastating part of these conflicts.
The real cost of ransomware in 2023 exceeds the total payments
While this report focuses on the ransomware attacks that resulted in compliance, non-compliance has costs of its own. Often, these attacks shut down core business or infrastructure for a period of time, which can be costly. For example, the report notes a cyberattack targeting MGM resort properties cost the business over $100 million in damages. As such, it’s hard for people to avoid paying the ransom. If they don’t there could be serious financial or infrastructural consequences. It’s a double-edged sword. If people keep paying, the number will keep on rising.
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